New York Court Extends Asset Freeze to Aid Singapore's Multichain Liquidation

A New York court has temporarily extended a freeze on wallets holding approximately $63 million in stolen USDC stablecoins. This decision supports Singapore liquidators seeking U.S. recognition of the liquidation of collapsed crypto bridge Multichain. Judge David S. Jones issued a provisional order for Circle to maintain the freeze on three Ethereum wallets linked to the case, emphasizing the need to prevent immediate and irreparable harm if assets could be released. A class action by U.S. investors aiming to control the same funds is on hold as it awaits a Chapter 15 review, to determine if Singapore's liquidation qualifies under U.S. law. This measure reflects ongoing international cooperation in insolvency matters, enabling Singapore liquidators to locate and recover Multichain's assets under U.S. court supervision. Multichain was a significant cross-chain asset bridge that faced financial troubles beginning in 2023 after significant assets were lost under suspicious conditions, leading to its eventual shutdown.

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